MIGRADOLLARS - THE REMITTANCES AND SAVINGS OF MEXICAN MIGRANTS TO THEUSA

In this article, we use new data from 22 communities to estimate the t otal flow of dollars back into Mexico as a result of migration to the United States. Our estimates include remittances sent while working ab road and money brought back on return trips; they incorporate transfer s by temporary as well as permanent US workers; they include money tra nsferred by legal as well as illegal migrants; and they include funds sent or brought by household heads as well as other family members. We estimate that US$ 24 million in 'migradollars' flowed into the sample communities during the survey year. In some places, the flow of US mo ney equalled or exceeded the value of locally earned income. When gene ralized to all of Western Mexico, our sample suggests a regional flow of US$ 1.5 billion; and when our data are inserted into an estimation model developed earlier by Lozano Ascencio, we estimate the total flow at US$ 2 billion for Mexico as a whole. Although most of this money w as spent on consumption, investments in productive activities were sig nificant, and directly or indirectly, we conclude that migradollars pl ay an extremely important role in Mexican economic production.